Perry Ellis sees promotions hurting, shares slump

Redazione Reuters

2 IN. DI LETTURA

(Reuters) - Apparel maker Perry Ellis International Inc (PERY.O) posted lower third-quarter earnings, lagging market estimates for the first time in at least two years, and said it expects increased promotions to hurt the current quarter as well.

Shares of the Miami-based company fell about 30 percent in morning trade on Thursday, making the stock the top percentage loser on Nasdaq.

Many apparel companies have been trying to drive sales on higher discounts in a highly competitive retail sector.

Perry Ellis said it had to raise promotions in October and November as its namesake brand and Rafaella did not sell well.

The company bought Rafaella Apparel Group, known for its sports and workwear sold through department stores, in January to diversify its presence in the women’s apparel market.

For the full-year, the company expects an adjusted profit of $2.00 or above, on revenue of about $1 billion. Analysts were expecting it to earn $2.51 on revenue of $1.02 billion, according to Thomson Reuters I/B/E/S.